Bill Text: IL HB2614 | 2021-2022 | 102nd General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Home Equity Assurance Act. Provides that a governing commission, with no less than $4,000,000 in its guarantee fund, may, if authorized (i) by referendum approved by a majority of the voters or (ii) by resolution of the governing commission upon approval by two-thirds of the commissioners, establish a Delinquent Tax Repayment Loan Fund to provide low-interest emergency loans to eligible applicants. Includes procedures to initiate and approve a referendum for the Delinquent Tax Repayment Loan Fund. Provides for conditions for the establishment and administration of the guaranteed home equity program with funds collected under the program.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2021-08-27 - Public Act . . . . . . . . . 102-0599 [HB2614 Detail]
Download: Illinois-2021-HB2614-Enrolled.html
Bill Title: Amends the Home Equity Assurance Act. Provides that a governing commission, with no less than $4,000,000 in its guarantee fund, may, if authorized (i) by referendum approved by a majority of the voters or (ii) by resolution of the governing commission upon approval by two-thirds of the commissioners, establish a Delinquent Tax Repayment Loan Fund to provide low-interest emergency loans to eligible applicants. Includes procedures to initiate and approve a referendum for the Delinquent Tax Repayment Loan Fund. Provides for conditions for the establishment and administration of the guaranteed home equity program with funds collected under the program.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2021-08-27 - Public Act . . . . . . . . . 102-0599 [HB2614 Detail]
Download: Illinois-2021-HB2614-Enrolled.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Home Equity Assurance Act is amended by | ||||||
5 | changing Section 11 as follows:
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6 | (65 ILCS 95/11) (from Ch. 24, par. 1611)
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7 | Sec. 11. Guarantee Fund.
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8 | (a) Each governing commission and program
created by | ||||||
9 | referendum under the provisions of this Act shall maintain a
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10 | guarantee fund for the purposes of paying the costs of | ||||||
11 | administering the
program and extending protection to members | ||||||
12 | pursuant to the limitations and
procedures set forth in this | ||||||
13 | Act.
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14 | (b) The guarantee fund shall be raised by means of an | ||||||
15 | annual tax levied
on all residential property within the | ||||||
16 | territory of the program having at
least one, but not more than | ||||||
17 | 6 dwelling units and classified by county
ordinance as | ||||||
18 | residential. The rate of this tax may be changed from year to
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19 | year by majority vote of the governing commission but in no | ||||||
20 | case shall it
exceed a rate of .12% of the equalized assessed | ||||||
21 | valuation of all property
in the territory of the program | ||||||
22 | having at least one, but not
more than 6 dwelling units and | ||||||
23 | classified by county ordinance as
residential, or the maximum |
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1 | tax rate approved by the voters of the
territory at the | ||||||
2 | referendum which created the program
or, in the case of a | ||||||
3 | merged program, the maximum tax rate approved by
the voters at | ||||||
4 | the referendum authorizing the merger, whichever rate is
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5 | lower. The commissioners shall cause the amount to be
raised | ||||||
6 | by taxation in each year to be certified to the county clerk in | ||||||
7 | the
manner provided by law, and any tax so levied and certified | ||||||
8 | shall be
collected and enforced in the same manner and by the | ||||||
9 | same officers as those
taxes for the purposes of the county and | ||||||
10 | city within which the territory of
the commission is located. | ||||||
11 | Any such tax, when collected, shall be paid
over to the proper | ||||||
12 | officer of the commission who is authorized to receive
and | ||||||
13 | receipt for such tax. The governing commission may issue tax
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14 | anticipation warrants against the taxes to be assessed for the | ||||||
15 | calendar
year in which the program is created and for the first | ||||||
16 | full calendar year
after the creation of the program.
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17 | (c) The moneys deposited in the guarantee fund shall, as | ||||||
18 | nearly as
practicable, be fully and continuously invested or | ||||||
19 | reinvested by the
governing commission in investment | ||||||
20 | obligations which shall be in such
amounts, and shall mature | ||||||
21 | at such times, that the maturity or date of
redemption at the | ||||||
22 | option of the holder of such investment obligations shall
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23 | coincide, as nearly as practicable, with the times at which | ||||||
24 | monies will be
required for the purposes of the program. For | ||||||
25 | the purposes of this
Section investment obligation shall mean | ||||||
26 | direct general municipal, state,
or federal obligations which |
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1 | at the time are legal investments under the
laws of this State | ||||||
2 | and the payment of principal of and interest on which
are | ||||||
3 | unconditionally guaranteed by the governing body issuing them.
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4 | (d) Except as permitted by this subsection and subsection | ||||||
5 | (d-5),
the guarantee fund shall be used solely and exclusively | ||||||
6 | for the
purpose of providing guarantees to members of the | ||||||
7 | particular Guaranteed
Home Equity Program and for reasonable | ||||||
8 | salaries, expenses, bills,
and fees incurred in administering | ||||||
9 | the program, and shall be used for no other
purpose.
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10 | A governing commission, with no less than $4,000,000 in | ||||||
11 | its guarantee
fund,
may, if authorized (i) by referendum duly | ||||||
12 | adopted by a majority of the voters or (ii) by resolution of | ||||||
13 | the governing commission upon approval by two-thirds of the | ||||||
14 | commissioners,
establish a Low
Interest
Home Improvement Loan | ||||||
15 | Program in accordance with and subject to procedures
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16 | established by a financial institution, as defined in the | ||||||
17 | Illinois Banking Act.
Whenever
the question of creating a Low | ||||||
18 | Interest Home Improvement Loan Program is
initiated by
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19 | resolution or ordinance of the corporate authorities of the | ||||||
20 | municipality or by
a petition
signed by not less than 10% of | ||||||
21 | the total number of registered voters of each
precinct in
the | ||||||
22 | territory, the registered voters of which are eligible to sign | ||||||
23 | the
petition, it shall be the
duty of the election authority | ||||||
24 | having jurisdiction over the municipality to
submit the
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25 | question of creating the program to the electors of each | ||||||
26 | precinct within the
territory at
the regular election |
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1 | specified in the resolution, ordinance, or petition
initiating | ||||||
2 | the
question. A petition initiating a question described in | ||||||
3 | this subsection shall
be filed with
the election authority | ||||||
4 | having jurisdiction over the municipality. The petition
shall | ||||||
5 | be filed
and objections to the petition shall be made in the | ||||||
6 | manner provided in the
Election Code.
A resolution, ordinance, | ||||||
7 | or petition initiating a question described in this
subsection | ||||||
8 | shall
specify the election at which the question is to be | ||||||
9 | submitted. The referendum
on the
question shall be held in | ||||||
10 | accordance with the Election Code. The question
shall be in | ||||||
11 | substantially the
following form:
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12 | "Shall the (name of the home equity program) implement | ||||||
13 | a Low Interest Home
Improvement Loan Program with money | ||||||
14 | from the guarantee fund of the established
guaranteed home | ||||||
15 | equity program?"
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16 | The votes must be recorded as "Yes" or "No".
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17 | Whenever a majority of the voters on the public question | ||||||
18 | approve the
creation of
the program as certified by the proper | ||||||
19 | election authorities or a resolution of the governing | ||||||
20 | commission is approved by a two-thirds majority, the | ||||||
21 | commission
shall
establish the program and administer the | ||||||
22 | program with funds collected under the
Guaranteed Home Equity
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23 | Program, subject to the following conditions:
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24 | (1) At any given time, the cumulative total of all | ||||||
25 | loans and loan
guarantees
(if applicable) issued under | ||||||
26 | this program may not reduce the balance of the
guarantee
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1 | fund to less than $3,000,000.
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2 | (2) Only eligible applicants may apply for a
loan.
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3 | (3) The loan must be used for the repair, maintenance, | ||||||
4 | remodeling,
alteration, or improvement of a guaranteed | ||||||
5 | residence. This condition is intended to include the | ||||||
6 | repair or maintenance of a guaranteed residence's water | ||||||
7 | and sewer pipes and repair of a guaranteed residence, | ||||||
8 | including but not limited to basement repairs, following | ||||||
9 | flooding damage to the property. This condition is not
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10 | intended to exclude the repair, maintenance, remodeling, | ||||||
11 | alteration, or
improvement of a guaranteed residence's | ||||||
12 | landscape. This condition is intended
to exclude the | ||||||
13 | demolition of a current residence. This condition is also
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14 | intended to exclude
the construction of a new residence.
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15 | (4) An eligible applicant may not borrow more than the | ||||||
16 | amount of equity
value in his or her residence.
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17 | (5) A commission must ensure that loans issued are | ||||||
18 | secured with
collateral that is at least equal to the | ||||||
19 | amount of the loan or loan guarantee.
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20 | (6) A commission shall charge an interest rate which | ||||||
21 | it determines to be
below the market rate of interest | ||||||
22 | generally available to the applicant.
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23 | (7) A commission may, by resolution, establish other | ||||||
24 | administrative
rules and procedures as are necessary to | ||||||
25 | implement this program including, but
not limited to, loan | ||||||
26 | dollar amounts and terms. A commission may also impose
on |
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1 | loan applicants a one-time application fee for the purpose | ||||||
2 | of defraying the
costs of administering the program.
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3 | (d-5) A governing commission, with no less than $4,000,000 | ||||||
4 | in its guarantee fund, may, if authorized by referendum duly | ||||||
5 | adopted by a majority of the voters, establish a Foreclosure | ||||||
6 | Prevention Loan Fund to provide low interest emergency loans | ||||||
7 | to eligible applicants that may be forced into foreclosure | ||||||
8 | proceedings. | ||||||
9 | Whenever the question of creating a Foreclosure Prevention | ||||||
10 | Loan Fund is initiated by resolution or ordinance of the | ||||||
11 | corporate authorities of the municipality or by a petition | ||||||
12 | signed by not less than 10% of the total number of registered | ||||||
13 | voters of each precinct in the territory, the registered | ||||||
14 | voters of which are eligible to sign the petition, it shall be | ||||||
15 | the duty of the election authority having jurisdiction over | ||||||
16 | the municipality to submit the question of creating the | ||||||
17 | program to the electors of each precinct within the territory | ||||||
18 | at the regular election specified in the resolution, | ||||||
19 | ordinance, or petition initiating the question. A petition | ||||||
20 | initiating a question described in this subsection shall be | ||||||
21 | filed with the election authority having jurisdiction over the | ||||||
22 | municipality. The petition shall be filed and objections to | ||||||
23 | the petition shall be made in the manner provided in the | ||||||
24 | Election Code. A resolution, ordinance, or petition initiating | ||||||
25 | a question described in this subsection shall specify the | ||||||
26 | election at which the question is to be submitted. The |
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1 | referendum on the question shall be held in accordance with | ||||||
2 | the Election Code. The question shall be in substantially the | ||||||
3 | following form: | ||||||
4 | "Shall the (name of the home equity program) implement a | ||||||
5 | Foreclosure Prevention Loan Fund with money from the guarantee | ||||||
6 | fund of the established guaranteed home equity program?" | ||||||
7 | The votes must be recorded as "Yes" or "No". | ||||||
8 | Whenever a majority of the voters on the public question | ||||||
9 | approve the creation of a Foreclosure Prevention Loan Fund as | ||||||
10 | certified by the proper election authorities, the commission | ||||||
11 | shall establish the program and administer the program with | ||||||
12 | funds collected under the Guaranteed Home Equity Program, | ||||||
13 | subject to the following conditions: | ||||||
14 | (1) At any given time, the cumulative total of all | ||||||
15 | loans and loan guarantees (if applicable) issued under | ||||||
16 | this program may not exceed $3,000,000. | ||||||
17 | (2) Only eligible applicants may apply for a loan. The | ||||||
18 | Commission may establish, by resolution, additional | ||||||
19 | criteria for eligibility. | ||||||
20 | (3) The loan must be used to assist with preventing | ||||||
21 | foreclosure proceedings. | ||||||
22 | (4) An eligible applicant may not borrow more than the | ||||||
23 | amount of equity value in his or her residence. | ||||||
24 | (5) A commission must ensure that loans issued are | ||||||
25 | secured as a second lien on the property. | ||||||
26 | (6) A commission shall charge an interest rate which |
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1 | it determines to be below the market rate of interest | ||||||
2 | generally available to the applicant. | ||||||
3 | (7) A commission may, by resolution, establish other | ||||||
4 | administrative rules and procedures as are necessary to | ||||||
5 | implement this program including, but not limited to, | ||||||
6 | eligibility requirements for eligible applicants, loan | ||||||
7 | dollar amounts, and loan terms. | ||||||
8 | (8) A commission may also impose on loan applicants a | ||||||
9 | one-time application fee for the purpose of defraying the | ||||||
10 | costs of administering the program. | ||||||
11 | (d-10) The Northwest Home Equity Assurance Program may, if | ||||||
12 | authorized (i) by referendum approved by a majority of the | ||||||
13 | voters or (ii) by resolution of the governing commission upon | ||||||
14 | approval by two-thirds of the commissioners, establish a | ||||||
15 | Delinquent Tax Repayment Loan Fund to provide low-interest | ||||||
16 | emergency loans to eligible applicants. | ||||||
17 | If the question of creating a Delinquent Tax Repayment | ||||||
18 | Loan Fund is initiated by resolution or ordinance of the | ||||||
19 | corporate authorities of the municipality or by a petition | ||||||
20 | signed by not less than 10% of the total number of registered | ||||||
21 | voters of each precinct in the territory, the registered | ||||||
22 | voters of which are eligible to sign the petition, it shall be | ||||||
23 | the duty of the election authority having jurisdiction over | ||||||
24 | the municipality to submit the question of creating the | ||||||
25 | program to the electors of each precinct within the territory | ||||||
26 | at the regular election specified in the resolution, |
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1 | ordinance, or petition initiating the question. A resolution, | ||||||
2 | ordinance, or petition initiating a question described in this | ||||||
3 | subsection shall be filed with the election authority having | ||||||
4 | jurisdiction over the municipality. The resolution, ordinance, | ||||||
5 | or petition shall be filed and objections to the resolution, | ||||||
6 | ordinance, or petition shall be made in the manner provided in | ||||||
7 | the Election Code. A resolution, ordinance, or petition | ||||||
8 | initiating a question described in this subsection shall | ||||||
9 | specify the election at which the question is to be submitted. | ||||||
10 | The referendum on the question shall be held in accordance | ||||||
11 | with the Election Code. The question shall be in substantially | ||||||
12 | the following form: | ||||||
13 | "Shall the (name of the home equity program) implement | ||||||
14 | a Delinquent Tax Repayment Loan Fund with money from the | ||||||
15 | guarantee fund of the Northwest Home Equity Assurance | ||||||
16 | Program?" | ||||||
17 | The votes must be recorded as "Yes" or "No". | ||||||
18 | If a majority of the voters on the question approve the | ||||||
19 | creation of a Delinquent Tax Repayment Loan Fund as certified | ||||||
20 | by the proper election authorities or two-thirds of the | ||||||
21 | commissioners, by resolution, approve the creation of a | ||||||
22 | Delinquent Tax Repayment Loan Fund, the commission shall | ||||||
23 | establish the program and administer the program with funds | ||||||
24 | collected under the program, subject to the following | ||||||
25 | conditions: | ||||||
26 | (1) At any given time, the cumulative total of all |
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1 | loans and loan guarantees (if applicable) issued under | ||||||
2 | this program may not exceed $3,000,000. | ||||||
3 | (2) Only eligible applicants may apply for a loan. The | ||||||
4 | Commission may establish, by resolution, additional | ||||||
5 | criteria for eligibility. | ||||||
6 | (3) The loan must be used to assist with repayment of | ||||||
7 | delinquent property taxes and for those facing imminent | ||||||
8 | delinquency. | ||||||
9 | (4) An eligible applicant may not borrow more than the | ||||||
10 | amount due to the treasurer's office. | ||||||
11 | (5) A commission shall charge an interest rate which | ||||||
12 | it determines to be below the market rate of interest | ||||||
13 | generally available to the applicant. | ||||||
14 | (6) A commission may, by resolution, establish other | ||||||
15 | administrative rules and procedures as are necessary to | ||||||
16 | implement this program including, but not limited to, | ||||||
17 | eligibility requirements for eligible applicants, loan | ||||||
18 | dollar amounts, and loan terms. | ||||||
19 | (7) Where practicable, it shall be required that a | ||||||
20 | borrower obtain free housing counseling services prior to | ||||||
21 | applying to this tax program for the purpose of assisting | ||||||
22 | with budgeting and providing a recommendation as to | ||||||
23 | whether this client is suited for this program. | ||||||
24 | (8) A commission may also impose on loan applicants a | ||||||
25 | one-time application fee for the purpose of defraying the | ||||||
26 | costs of administering the program. |
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1 | (e) The guarantee fund shall be maintained, invested, and | ||||||
2 | expended
exclusively by the governing commission of the | ||||||
3 | program for whose purposes
it was created. Under no | ||||||
4 | circumstance shall the guarantee fund be used by
any person or | ||||||
5 | persons, governmental body, or public or private agency or
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6 | concern other than the governing commission of the program for | ||||||
7 | whose
purposes it was created. Under no circumstances shall | ||||||
8 | the guarantee fund be
commingled with other funds or | ||||||
9 | investments.
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10 | (e-1) No commissioner or family member of a commissioner, | ||||||
11 | or employee or
family member of an employee, may receive any
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12 | financial benefit, either directly or indirectly, from the | ||||||
13 | guarantee fund.
Nothing in this subsection (e-1) shall be | ||||||
14 | construed to prohibit payment of
expenses to a commissioner in | ||||||
15 | accordance with Section 4 or payment of salaries
or expenses | ||||||
16 | to an employee in accordance with this Section.
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17 | As used in this subsection (e-1), "family member" means a | ||||||
18 | spouse, child,
stepchild, parent, brother, or sister of a | ||||||
19 | commissioner or a child, stepchild,
parent, brother, or sister | ||||||
20 | of a commissioner's spouse.
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21 | (f) An independent audit of the guarantee fund and the | ||||||
22 | management of the
program shall be conducted annually and made | ||||||
23 | available to the public
through any office of the governing | ||||||
24 | commission or a public facility such as
a local public library | ||||||
25 | located within the territory of the program.
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26 | (Source: P.A. 98-1160, eff. 6-1-15; 99-37, eff. 1-1-16 .)
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